Barnes & Noble shares surged on a report that it may sell the Nook business to Microsoft for $1 billion. Heard on the Street’s Miriam Gottfried looks at the pros and cons for such a deal. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... I ... I ... and all stodgy old bookseller ... looking that stocks ... look like a rocket ship twenty one percent ... David Maryland and then in use today but there are reports from Bowdler a ... holiday might be doing that has investors obviously excited here to break it down forest named Gottfried Heard on the Street team who brought her downstairs will be no bones about the deal rated and high this is interesting tells was going to sell the report is that Micra soft is going to propose to buy a pocket part of Barnes and Noble's Nook Media business for one billion dollars ... aam and so far we think that part includes ... a bar according to the report includes the digital that's actually can say and then made ... our colleagues over our colleagues in tech crime ... I'm broke the story last night and ... on ... Dickson a Sony digital assets Nook Media also includes the college bookstores but it doesn't look like a deal would include the college bookstore ... now you know who buys an old very interesting right officially we in the red and worldly love booksellers who once the company do well ... in in a big bet on the milk on electronic and dance ... is this the sizes in a tacit admission from them than they were not up to getting into hardware well hardware CCB something that they are ... planning to get ... I need to be ... our not doing well in hardware to losing money in the ... media section is losing money because of hardware ... on ... the their tablets got great reviews but they just didn't have that ... functionality and that ... it's a very crowded market including Microsoft with its own Surface tablet which is very interesting read is okay so ... on the ten billion dollars to not buy the hardware ... while the would be buying the hardware may be winding down the hardware effectively right so what the what the what if or when they're pulling is is to use the note ... which I on ... actually to be fair it still has twenty five percent of the e book market in bonds and acted is probably the piece that Micra soft is really interested and ... on the need something to make people buy Surface tablets The Microsoft tablet ... and if they own the Note app ... on Yemeni that could be something that they can use to drive their own tablets in Austria ... and ten billion dollars is not a lot of money ... I mean it's not a tremendous Mana money a microscope Eye on soft but for Barnes and Noble have to think they'd be happy to have a billion dollars I mean that's pretty much there for that was their market cap before this ... write on any ... when Mike SUP made its initial investment in been in OPM remember it only seventeen percent of Bumi during now ... on that valued Next Media itself at one point seven billion ... so that so I'm ... that was Artisan lofty as it was ... aam but ... you know it looks like ... it's ... a worth worth it to Micra soft enough I mean ... if providing they actually do the tree with a smaller and that's the thing is the shares are off the new report is like wildfire food or anything confirmed yet summing up and there could be other interested parties ... write to take it for what it's worth to have to think through much persuasion